A study by Floatpays has found that financial stress is a key detractor from employee wellness – impairing cognitive functioning, which can lead to a reduction in productivity.
The inaugural Floatpays State of Employee Wellbeing Barometer 2022 found that the impact of financial stress manifests as a lack of concentration (54%), negative mood changes (51%), sleeping problems (50%), and eating-related issues (23%).
Floatpays founder and CEO Simon Ward said according to the barometer, one in five employee respondents reported high levels of financial stress.
“In South Africa, a previous study done by Momentum found that losses in productivity equate to 128 million days, which accounts for R38-billion or around 2% of the country’s GDP. This arresting reality is compounded by the marked decline in labour productivity across all sectors, as statistics demonstrate,” he said. “Employee wellness programmes that focus on uplifting and empowering employees by means of financial education and support have the potential to change the trajectory of labour productivity in South Africa.”
One of the ways consumers can have a cash injection is to invest in securities or shares.
Wendy Myers, the head of securities at PSG Wealth, said when considering investing in shares, it is important to determine whether you are a growth or value investor. Your risk appetite and time horizon will influence this decision.
“A wide variety of investment vehicles and asset classes are available that can be structured in various ways to help meet the investment goals of different individuals. Speak to a qualified financial adviser to structure a financial plan and portfolio, which can help you meet your investment needs and realise your financial freedom,” Myers said.
She explained that stockbroking firms offer investors the ability to invest in a myriad of investments such as JSE-listed shares, exchange trade funds (similar to a unit trust, just listed on the JSE) and listed or unlisted derivatives. You can choose a direct stockbroking option where you are in control of all investment decisions, or a managed option where you hand such investment decisions over to an investment professional.
The key to investing for the long term is to choose good quality stocks. The long-term investor is not interested in active trading or in short-term price fluctuations, so market timing (when to enter the market) isn’t important – these are typical considerations a trader (short-term investing) will consider. However, a key part of investing for the long-term is diversification.
The managed stockbroking option provides the long-term investor with access to a dedicated adviser (a portfolio manager qualified to construct and manage your individual portfolio). They will spend time understanding your risk profile and will match this to a diversified portfolio that complements your overall financial plan.
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